Caskets Inc. was incorporated on June 1, but did not start business until September 1. It adopted a fiscal year ending March 31, coinciding with the end of its natural business cycle. In connection with organizing the business, Caskets Inc. incurred the following expenses:

a. What is the amount of the organizational expenditures?

b. How much of the amount is deductible in the corporation’s first taxable year?

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Legal fees for incorporating Accounting fees for opening corporate books Tax planning advice Printing and issuing stock certificates Incorporation fee to state Temporary directors' fees Legal fees for the transfer of assets to the corporation $8,000 400 300 50 100 2,000 500 $11,350